CURWENSVILLE – On Monday night members of Curwensville Borough Council learned about a previously unknown, non-interest bearing account the borough had containing $150,000.
Council President Mark Curulla read a prepared statement to council. Its contents are as follows:
“Let’s look at the financial situation of the borough.
“Those of you whom have worked previously on council know that I am very conservative with the borough’s money. You are also aware that when I suspect that there is something amiss in the finances, that I am like a bulldog and do not stop digging until I find out what it is.
“Looking back to the previous finances, everyone is aware that the borough borrowed $150,000 in the late fall of 2007 with a general obligation note to take the borough into 2008 until the borough taxes were received. When I came on council in January 2008 council was informed by the previous treasurer (Emma Guarino) that more money would be needed to keep the borough running until the tax money came in so council in turn took out a $200,000 tax anticipation note to get the borough through these times.
“The borough paid this note off between August and September 2008 thinking we had plenty of money. We were then informed in the fall around October 2008 that the borough would need to borrow another $50,000 to keep the borough running for the month of December of 2008, which Mr. (Larry) Seamen and I had to attend court to acquire another general obligation note. We then had to apply for another tax anticipation note in the amount of $260,000 to keep the borough running until the taxes started coming in.
“This really bothered me so I started digging back through the borough’s finances two weeks ago and enlisted the help of the present treasurer, Autumn Norris.
“Low and behold we find that in one of the bank accounts the amount of $150,000 in a non-interest bearing checking account that we on borough council knew nothing about. This was not shown on any financial reports that council received. The reports are here for everyone to inspect and the interest was paid on this up money, up to $500 per month out of the general account, costing the borough approximately $7,000 for attorney fees and interest that was unnecessary.
“I am not here to case blame, just to point out the facts. The bank statements were tucked away in a drawer. Let members of council examine all the reports and facts and then members of council can make the call.”
After reading the statement council discussed the matter of the unknown bank account. Curulla and Norris stated that they learned of the account after a statement from First Commonwealth Bank came to the borough building. Norris, who was named secretary/treasurer in November after Guarino was let go, stated she contacted the bank after reading the statement. She indicated that she had to have the account turned over from the prior treasurer’s name into her name before she could explore the matter further.
Curulla noted that after researching the matter with Norris they discovered the $150,000 to be the remainder of the $200,000 tax anticipation note the borough took out in late 2007/early 2008 and paid off in August/September 2008.
The account, council learned, was opened on Feb. 2, 2008.
“This thing to me was mindboggling,” said Curulla.
He noted that he was most upset that the $150,000 sat in an account that did not accrue interest.
Norris said that that bank records show that $50,000 of that money was moved into the borough’s general fund.
Council members questioned whether they had approved that transfer. Curulla indicated that there were no breakdowns on the financial reports until Norris took over for Guarino.
Curulla proposed using the newly found funds to pay off recent debt the borough has incurred.
Following their solicitor’s advice, council decided to audit the minutes of meetings from Oct. 2007 to the present to see when or if the $50,000 transfer had ever been approved. Curulla indicated those minutes would be sparse as well.
“This is nuts,” council member Sam Ettaro said of the discrepancies. “We need to hold people accountable.”